It’s time to check your knowledge on the concepts presented in this section. Refer to the Answer Key at the end of the book for feedback. 1. Mateus is a marketer for a consumer products company. His company is considering marketing a new breakfast drink, but Mateus wants to make certain that there is a sufficient number of consumers in his target audience to make the new product development process worthwhile. Which essential factor of market segmentation is he analyzing? Accessible Differentiable Actionable Measurable 2. Wall Enterprises is considering developing a new product for a market segment that has been identified by marketing research. However, based on the research, it appears that the market segment may be smaller than originally anticipated. Which essential factor of market segmentation does this reflect? Accessible Differentiable Substantial Actionable 3. Alma is analyzing the market segment she has identified for a new service to determine whether her firm can reach the consumers in that market within the constraints of her budget, given the resources of the firm. Which essential factor of market segmentation does this reflect? Accessible Actionable Substantial Measurable 4. Idris has been researching a potential market segment for his company’s new product. He is concerned that, although the product holds considerable promise, the advertising campaign would be beyond the company’s budget. Which essential factor of market segmentation appears to be lacking in Idris’s analysis? Differentiable Substantial Measurable Accessible 5. Which essential factor in selecting a target market refers to the ability to accurately determine the size of the market in terms of either sales volume or number of customers? Actionable Differentiable Measurable Substantial

1. TOPIC
TRADE CYCLE
LECTURE: 17
DATE: 20/03/2019

2. TOPIC LAYOUTS
 Introduction and meaning
 Definition
 Causes of trade / Business cycle
 Phases or Stages of Business cycle

3. INTRODUCTION AND MEANING

4. BUSINESS CYCLE / TRADE CYCLE
The regular fluctuation or ups
and down in the level of
economic activity over period of
time.
The economic rise and fall of a
firm in the economy.

5. WHY BUSINESS ACTIVITIES FLUCTUATE?
 Irregular innovation
 Changes in Productivity
 Interest Rates
 Political events
 Financial instability
 Competitive market
 Changes in investment

6. PHASES OF BUSINESS CYCLE
1:- Peak
or boom
Recession
Trough
Recovery /
expansion

7. 1. Peak or Boom
The stage of business life cycle by which
the business activity has reached at the maximum level.
 Full employment
 Maximum Output and trade
 Effective market demand
 High employment rate
 High investment and high wages
PHASES OF BUSINESS CYCLE

8. 2. Recession / Contraction
Second phase of business cycle in which the
output, income and employment starts declining.
 Decreasing output and trades
 High unemployment occurs
 Decreasing income, wages and profit
 Lowering investment and consumption
 Lasts for 6 months to 1 year
PHASES OF BUSINESS CYCLE

9. 3. Trough
A phase of business cycle in which the output,
income and employment touch the bottom level.
 Activities drop to lowest levels
 Unemployment is on peak
 No production and output
 Very extreme condition
PHASES OF BUSINESS CYCLE

10. 4. Recovery / Expansion
A phase or duration in which the
economies rebuilding and expanding output, income and
employment levels.
 Changes in techniques
 Innovative strategies
 Increase in spending
 Output is again high
PHASES OF BUSINESS CYCLE

11. PHASES OF BUSINESS CYCLE
Phases Economic activities
Peak or Boom Output is maximum level
Unemployment is at lowest level
Recession Output declines
Unemployment increases
Trough Output is at minimum level
Unemployment is at highest level
Recover /
Expansion
Output increases
Unemployment declines